Tax help

[Deleted member 348872]

I was made redundant earlier this year, then took a 6 month etc and now started a new full time job. new place didnt tax me in first pay and hmrc reckon i will owe nearly 4k.Any idea who i can get to review my tax and give some advice? its all paye so shouldn't be complicated but is for me. even chat gpt has confused me. think it will be a 30min review for someone who knows tax.
I am looking to start a side business this year and want my tax clear as it seems wrong every year.

 

[ctrlbrk]

Probably @Newchodge is best suited to advise.

 

[MyAccountantOnline]

I was made redundant earlier this year, then took a 6 month etc and now started a new full time job. new place didnt tax me in first pay and hmrc reckon i will owe nearly 4k.Any idea who i can get to review my tax and give some advice? its all paye so shouldn't be complicated but is for me. even chat gpt has confused me. think it will be a 30min review for someone who knows tax.
I am looking to start a side business this year and want my tax clear as it seems wrong every year.

You'd be best asking the accountant that looks after your business accounts and tax.

You'll need to include all taxable income for the tax year not just earnings from employment.

 

[Newchodge]

When were you made redundant?
Since April 2025 did you receive any taxable state benefits or self employed or pension income?
HMRC cannot tell you how much tax you will owe this year until after 5 April.
What is your new annual salary?
When, this year, are you planning to start a side business?

 

[JEREMY HAWKE]

Could this be an emergency paye tax code?

 

[fisicx]

I was made redundant earlier this year, then took a 6 month etc and now started a new full time job. new place didnt tax me in first pay and hmrc reckon i will owe nearly 4k.

As already suggested, HMRC are currently collecting for the tax year ending April 2025. Anything you have earned after that date won't get assessed until after April 2026.

If HMRC are saying you owe £4K is because you didn't pay enough tax between April 2024 and April 2025.

 

[WaveJumper]

I think in the first instance login to your online HMRC portal you should find all the info there and it should show you how they have come up with this number, you will see what tax codes have been used.

 

[Deleted member 348872]

When were you made redundant?
Since April 2025 did you receive any taxable state benefits or self employed or pension income?
HMRC cannot tell you how much tax you will owe this year until after 5 April.
What is your new annual salary?
When, this year, are you planning to start a side business?

i started a new job dec 10th. havent supplied them p45. Got paid end of dec and they didnt deduct tax, take home was 4615 259 ni. I then get a letter from hmrc saying new tax code to apr 26 is K2979 X and that for new employer they have added 29803 for this income (75k pa). On that basis my total tax free amount is -29803 and estimated tax i owe is 3821. I was made redundant may so in that employment for 25 i had April pay then may including redundancy. That total was £72156.11 and paid 29801.30 in income tax and 635.04 in national insurance. Their tax code on their final payslip in may 2025 showed 302T tax code. Their p60 for that employer showed a code of k545M1. in february their payslip showed a k545 code, march showed k545, april showed 302t. Then in June i started a 6mth ftc on £75kpa. For that I earned a total of £36129 and paid 6835 in tax and 1734 in ni and their tax code was 474. so for first 2 roles I earned 108285 and paid 36636. This is from hmrc site. For new job they seem to have 18461 and it says
The income you can have, taking into account any adjustments, before paying tax.
−£29,803
An estimate of the total amount of Income Tax you will pay on all your PAYE income for this tax year.
£47,060

I don't understand all this. I know once you go over £100k that your personal allowance drops by £1 for every £2 so if i add all earning up it comes to £126926 so basically wipes out my allowance.

Since i earned over 100k every year my tax has been wrong and my code changes even though i give them my projected earnings, but i always pay off or get them to collect. Last year owed £7 which i paid so should have been all square for 25/26. I was on basic of 115k and set that. Now im on 75k so was hoping none of this stress anymore!

 

[Deleted member 348872]

I think in the first instance login to your online HMRC portal you should find all the info there and it should show you how they have come up with this number, you will see what tax codes have been used.

That's where all the figures are from. But i don';t understand how i owe. it's the breaching 100k that does it. But also if I had paid up 24/25 why was my tax code 302 and then 474?

 

[Deleted member 348872]

That's where all the figures are from. But i don';t understand how i owe. it's the breaching 100k that does it. But also if I had paid up 24/25 why was my tax code 302 and then 474?

Not to confuse things but last year i was on 115k and put 125 as estimated earnings in case i got a bonus. i thought i would rather overpay than owe. So i got a bonus but decided to pay it into pension via sacrifice, so earned less than estimated. Did tax return and it said i was due c850. i tried to claim that twice and didnt get it. called them and they said i owed about 850 from 21/22 year. I went through paperwork and it showed I had told them to take that via tax code in the following year and the letter i had from them said paid. They reckoned they never took it and i couldn't prove otherwise as my tax code was changing every year. I ended up writing to them to get an explanation but even that confused me and they just say it's correct without checking. I have worked in financial markets for years but tax just confuses me!

 

[fisicx]

Go see an accountant. There will no doubt be plenty near where you live who can help.

All those numbers in your post without paragraphs is mighty confusing.

 

[Deleted member 348872]

Go see an accountant. There will no doubt be plenty near where you live who can help.

All those numbers in your post without paragraphs is mighty confusing.

should be clear. 3 jobs and 3 lots of earnings and tax. No one seems to be able to help. how much would an accountant charge? i would of thought it would be a quick answer for someone in the know.

 

[fisicx]

should be clear. 3 jobs and 3 lots of earnings and tax. No one seems to be able to help. how much would an accountant charge? i would of thought it would be a quick answer for someone in the know.

It's not a quick answer. Far too many moving parts.

Depends on the accountant, but a couple of hundred would probably get you some decent advice.

 

[Newchodge]

K tax codes mean you are repaying a large amount of tax from another source of income or tax year.

To advise you properly an accountant would need to see your tax code and calculations, actual annual income and tax paid for every year since at least 2021. All of that should be available on your HMRC portal. Plus details about child benefit etc.

It is relevantly simple provided the data is all there, so the charge should no be too high.

 

[MyAccountantOnline]

should be clear. 3 jobs and 3 lots of earnings and tax. No one seems to be able to help. how much would an accountant charge? i would of thought it would be a quick answer for someone in the know.

I tried to read it, it's really not easy.

If you want to list your income and break it into paragraphs here making the dates clear and splitting it into tax years I'm happy to help here on the forum.

I did see from other posts you've made reference to businesses you own and run - did you have any other income in additional to your PAYE earnings?

 

[MyAccountantOnline]

Try formating it something like this -

Year ended 5 April 2025

Gross total Tax deducted​

Employer 1
Employer 2
Other income

 

[Newchodge]

I tried to read it, it's really not easy.

If you want to list your income and break it into paragraphs here making the dates clear and splitting it into tax years I'm happy to help here on the forum.

I did see from other posts you've made reference to businesses you own and run - did you have any other income in additional to your PAYE earnings?

I think you'll find it is complicated by alleged previous tears under-payments

 

[Deleted member 348872]

I tried to read it, it's really not easy.

If you want to list your income and break it into paragraphs here making the dates clear and splitting it into tax years I'm happy to help here on the forum.

I did see from other posts you've made reference to businesses you own and run - did you have any other income in additional to your PAYE earnings?

Hi thank you. Cani dm you the details? I havent had any income aside from paye for past couple of years. Last financial year i did a tax return and owed £7 which i paid so this year should of been clear. I had expected basic earnings of 115k until made redundant. Now i earn 75k

 

[Newchodge]

Hi thank you. Cani dm you the details? I havent had any income aside from paye for past couple of years. Last financial year i did a tax return and owed £7 which i paid so this year should of been clear. I had expected basic earnings of 115k until made redundant. Now i earn 75k

How much redundancy money did you get? How much salary did you get for April and May 2025?

 

[MyAccountantOnline]

Hi thank you. Cani dm you the details? I havent had any income aside from paye for past couple of years. Last financial year i did a tax return and owed £7 which i paid so this year should of been clear. I had expected basic earnings of 115k until made redundant. Now i earn 75k

I'm very happy to help on the forum if you post the relevant figures (income sources, amounts, tax already paid etc) - that way the answer may help others too.

If you looking for professional personal advice by DM I'm happy to help but it will be treated as professional work. As a practising accountant I'll need to carry out AML checks and issue a letter of engagement before giving private advice and I do charge for that.

 

[Newchodge]

i started a new job dec 10th. havent supplied them p45. Got paid end of dec and they didnt deduct tax, take home was 4615 259 ni. I then get a letter from hmrc saying new tax code to apr 26 is K2979 X and that for new employer they have added 29803 for this income (75k pa). On that basis my total tax free amount is -29803 and estimated tax i owe is 3821. I was made redundant may so in that employment for 25 i had April pay then may including redundancy. That total was £72156.11 and paid 29801.30 in income tax and 635.04 in national insurance. Their tax code on their final payslip in may 2025 showed 302T tax code. Their p60 for that employer showed a code of k545M1. in february their payslip showed a k545 code, march showed k545, april showed 302t. Then in June i started a 6mth ftc on £75kpa. For that I earned a total of £36129 and paid 6835 in tax and 1734 in ni and their tax code was 474. so for first 2 roles I earned 108285 and paid 36636. This is from hmrc site. For new job they seem to have 18461 and it says
The income you can have, taking into account any adjustments, before paying tax.
−£29,803
An estimate of the total amount of Income Tax you will pay on all your PAYE income for this tax year.
£47,060

I don't understand all this. I know once you go over £100k that your personal allowance drops by £1 for every £2 so if i add all earning up it comes to £126926 so basically wipes out my allowance.

Since i earned over 100k every year my tax has been wrong and my code changes even though i give them my projected earnings, but i always pay off or get them to collect. Last year owed £7 which i paid so should have been all square for 25/26. I was on basic of 115k and set that. Now im on 75k so was hoping none of this stress anymore!

Some basics that you need to understand.

The tax year runs from 6 April to 5 April every year All income in that period counts towards your taxable income, except the first £30,000 of a redundancy payment is free of tax and NI. Th fact you are now earning 75k is not relevant because you have had other income during the tax year.

Tax codes can change throughout the year, some apply cumulatively, some don't (M1 means it is not cumulative). You cannot calculate total tax due until after 5 April.

HMRC has not the slightest interest in the estimates you give of what you might earn.

Your current employer should have asked you to complete a new starter form which indicated whether you had any PAYE (not self employed) income since 6 April, whether you currently have other PAYE income etc. Based on that information they should have deducted tax in December.

 

[Deleted member 348872]

I'm very happy to help on the forum if you post the relevant figures (income sources, amounts, tax already paid etc) - that way the answer may help others too.

If you looking for professional personal advice by DM I'm happy to help but it will be treated as professional work. As a practising accountant I'll need to carry out AML checks and issue a letter of engagement before giving private advice and I do charge for that.

 

[Deleted member 348872]

Apologies, was in the office so couldn't reply. Here are the details.

Tax yr Apr24 to 25 I owed £7 according to self assessment and paid it. I also notified hmrc of expected 25/26 earning of £115k so they could set the appropriate tax code for the year. My p60 for that employment to apr 25 showed final tax code of K545 M1.

i was then paid in april 25 as per hmrc
taxable income 9801, tax paid 3190, ni 356 - payslip shows tax code 302T i assume on the back of my provided estimated earnings of 115k.

May - made redundant. taxable income 61788, tax paid 26497, ni 252 tax code 302T according to hmrc site. may payslip shows slightly different. it included 4356 gross salary. so total gross pay 91579 (includes 30k tax free) total deductions 27050, net pay 64528

p45 showed total pay to date 71589, total tax 29688 and final code 302T

Job 2 - joined June 25. 6month etc, 75k pa pro rata. supplied p45.
First pay june 25 - tax code 302T
next pays all 474T.
p45 - taxable pay this job 36129, tax 6835, ni 1734 final code 474T
total pay td 107720, tax 36523

Job 3 current. 75k pa. Started dec 10th paid 31st. hadn't supplied p45 at that point.
dec pay 4615, no tax deducted, ni 259, tax code 1257L

Then receive hmrc letter stating my tax code for 25/26 will be K2979X
says personal allowance £0, less adjustments for estimated tax you owe (this year) £29803
making my tax free allowance -£29803 and estimated tax i owe this year £3821

so according to hmrc site
job 1 - total income 71156, total tax 59801, total ni 635
job 2 - total income 36129 total tax 6835, total ni 1734
job 3 - so far income 4615, total tax 0, total ni 259

so for job 3 i estimate on 75k it will be about 6250 gross pm, so aside from december which they have messed up, i should be earning around 18750 for feb-apr (hmrc has £18,461.00 from 10th dec) sb taxed around 1400pm or 4200 for the 3 months remaining aside from dec miss.
The hmrc letter says the new tax code is to collect what they estimate i will owe this year (this is in addition to the tax you owe from an earlier year????? which i dont believe i owe anything.

 

[Deleted member 348872]

"HMRC has not the slightest interest in the estimates you give of what you might earn."
of course hmrc care about your estimated earnings as they adjust your tax code on the back of it. if my basic was 115k and i didnt tell them then my pa would be 12570 and when i get to eoy and earned 115k i would of underpaid by nearly 5k whereas if i tell them from the start they adjust my pa and i get a new code which i did of 302T

 

[fisicx]

Your earnings after April 2025 are irrelevant to any calculations or your tax code.

The tax you owe is based on the tax year up to April 2025.

 

[Newchodge]

"HMRC has not the slightest interest in the estimates you give of what you might earn."
of course hmrc care about your estimated earnings as they adjust your tax code on the back of it. if my basic was 115k and i didnt tell them then my pa would be 12570 and when i get to eoy and earned 115k i would of underpaid by nearly 5k whereas if i tell them from the start they adjust my pa and i get a new code which i did of 302T

HMRC give you the right tax code as soon as they receive the first RTI from your employer on your first pay date.

 

[Deleted member 348872]

Your earnings after April 2025 are irrelevant to any calculations or your tax code.

The tax you owe is based on the tax year up to April 2025.

? this is all about this years tax eg upto apr26 projected tax.last years is not an issue for my question.

 

[Deleted member 348872]

HMRC give you the right tax code as soon as they receive the first RTI from your employer on your first pay date.

yes but i can update that or set the initial code. part of my issues in previous years are repeatedly changing codes making it difficult to track what is right.

 

[Newchodge]

Apologies, was in the office so couldn't reply. Here are the details.

Tax yr Apr24 to 25 I owed £7 according to self assessment and paid it. I also notified hmrc of expected 25/26 earning of £115k so they could set the appropriate tax code for the year. My p60 for that employment to apr 25 showed final tax code of K545 M1.

i was then paid in april 25 as per hmrc
taxable income 9801, tax paid 3190, ni 356 - payslip shows tax code 302T i assume on the back of my provided estimated earnings of 115k.

May - made redundant. taxable income 61788, tax paid 26497, ni 252 tax code 302T according to hmrc site. may payslip shows slightly different. it included 4356 gross salary. so total gross pay 91579 (includes 30k tax free) total deductions 27050, net pay 64528

p45 showed total pay to date 71589, total tax 29688 and final code 302T

Job 2 - joined June 25. 6month etc, 75k pa pro rata. supplied p45.
First pay june 25 - tax code 302T
next pays all 474T.
p45 - taxable pay this job 36129, tax 6835, ni 1734 final code 474T
total pay td 107720, tax 36523

Job 3 current. 75k pa. Started dec 10th paid 31st. hadn't supplied p45 at that point.
dec pay 4615, no tax deducted, ni 259, tax code 1257L

Then receive hmrc letter stating my tax code for 25/26 will be K2979X
says personal allowance £0, less adjustments for estimated tax you owe (this year) £29803
making my tax free allowance -£29803 and estimated tax i owe this year £3821

so according to hmrc site
job 1 - total income 71156, total tax 59801, total ni 635
job 2 - total income 36129 total tax 6835, total ni 1734
job 3 - so far income 4615, total tax 0, total ni 259

so for job 3 i estimate on 75k it will be about 6250 gross pm, so aside from december which they have messed up, i should be earning around 18750 for feb-apr (hmrc has £18,461.00 from 10th dec) sb taxed around 1400pm or 4200 for the 3 months remaining aside from dec miss.
The hmrc letter says the new tax code is to collect what they estimate i will owe this year (this is in addition to the tax you owe from an earlier year????? which i dont believe i owe anything.

I find this extremely confusing.

What was your pre-tax and pre-NI total SALARY for each month from April 2025 to December 25?
How much was your total redundancy settlement in (or around) May 2025?
Did you receive any other income from April to December 2025?
According to he HMRC website, what is your current 2025/2026 ta code?

 

[Newchodge]

yes but i can update that or set the initial code. part of my issues in previous years are repeatedly changing codes making it difficult to track what is right.

Your tax code is what HMRC states that it is. If it is wrong you need to discuss it with them. If you keep changing your income estimate after the correct code has bee43n issued, no wonder your code keeps changing.

 

[Deleted member 348872]

I find this extremely confusing.

What was your pre-tax and pre-NI total SALARY for each month from April 2025 to December 25?
How much was your total redundancy settlement in (or around) May 2025?
Did you receive any other income from April to December 2025?
According to he HMRC website, what is your current 2025/2026 ta code?

i cant make this any clearer. have given all the facts and numbers and said its paye and this year only.
@MyAccountantOnline are you able to assist?

 

[fisicx]

? this is all about this years tax eg upto apr26 projected tax.last years is not an issue for my question.

There is no projected tax. After Apr 26 you reset and review. Your tax code will be adjusted accordingly.

 

[Deleted member 348872]

There is no projected tax. After Apr 26 you reset and review. Your tax code will be adjusted accordingly.

projected tax upto end of this tax year. please dont reply anymore im looking for professional help and yes i have contacted people and had no replies

 

[pentel]

HMRC give you the right tax code as soon as they receive the first RTI from your employer on your first pay date.

This!!!!

 

[syedsheraz]

I was made redundant earlier this year, then took a 6 month etc and now started a new full time job. new place didnt tax me in first pay and hmrc reckon i will owe nearly 4k.Any idea who i can get to review my tax and give some advice? its all paye so shouldn't be complicated but is for me. even chat gpt has confused me. think it will be a 30min review for someone who knows tax.
I am looking to start a side business this year and want my tax clear as it seems wrong every year.

Very common PAYE issue after redundancy and a gap. You don’t need a big firm a local accountant or tax adviser (ATT / ACCA / ACA / CTA) can do a 30-minute PAYE tax code review and usually fix this quickly. Cost is often £50 to £150. It’s likely an incorrect tax code or HMRC assuming overlapping income, especially if your P45 wasn’t applied. Worth sorting now before you start a side business, as the same adviser can get everything straight and stop this from happening every year.

 

[Deleted member 348872]

Very common PAYE issue after redundancy and a gap. You don’t need a big firm a local accountant or tax adviser (ATT / ACCA / ACA / CTA) can do a 30-minute PAYE tax code review and usually fix this quickly. Cost is often £50 to £150. It’s likely an incorrect tax code or HMRC assuming overlapping income, especially if your P45 wasn’t applied. Worth sorting now before you start a side business, as the same adviser can get everything straight and stop this from happening every year.

All the information has been posted multiple times but no one seems able to assist.

 

[DontAsk]

All the information has been posted multiple times but no one seems able to assist.

If telling you to see a professional isn't assisting, then I don't know what is.

If you are not getting the answer you want then maybe you are asking the wrong question, or in the wrong place.

 

[Newchodge]

If telling you to see a professional isn't assisting, then I don't know what is.

If you are not getting the answer you want then maybe you are asking the wrong question, or in the wrong place.

Or failing to give the needed information.

 

[Newchodge]

Very common PAYE issue after redundancy and a gap. You don’t need a big firm a local accountant or tax adviser (ATT / ACCA / ACA / CTA) can do a 30-minute PAYE tax code review and usually fix this quickly. Cost is often £50 to £150. It’s likely an incorrect tax code or HMRC assuming overlapping income, especially if your P45 wasn’t applied. Worth sorting now before you start a side business, as the same adviser can get everything straight and stop this from happening every year.

Actually, if you analyse the different information there was no income gap.

 

[Deleted member 348872]

Or failing to give the needed information.

what needed information? i have given all figures including p45's, p60's payslips and what is on hmrc site. You just came back referring to previous years when i stated this is this year only and paye only. Also referencing 30k redundancy tax free which i am aware of and has been taken into account. my figures are taxable income.